Brief respite on bodyshop 'shrinkage' The harsh winter has proved a saviour for the body repair sector, with the rise in vehicle accidents averting closure for some shops. But according to latest findings by Trend Tracker, this is only a temporary reprieve from continuing 'shrinkage'. Key points from the study show: From 2007 to 2009 privately-funded and insurance repairs were down 10% and 9% respectively; after inflation, average body repair costs have fallen 5%; the value of the UK collision repair market dropped by 11% in real terms; 335 primary bodyshops closed (over 2,000 in the past decade). Trend Tracker forecasts that by 2015 there will be:
The report says that advances in car technology are compounding problems for non-specialist, all-makes repairers who cannot afford to invest in new repair techniques and training. "Complex repairs also increase the rate of un-repairable total losses," said Trend Tracker director Chris Oakham. "Furthermore, insurers and used car dealers increasingly use SMART practitioners rather than bodyshops for small repairs." He added: "Investors in the car body repair sector should beware of generally weak or non-existent returns and consider that not many consolidation opportunities remain in a sector offering few advantages for the small number of larger players in the market."
'Hairdressers trusted more than car dealers'
Car salespeople are even less trusted than builders, according to a survey among 2,000 members of the public. Most trusted are hairdressers and driving instructors.
Commented occupational psychologist Chris Lewis: "Trust is a powerful and complex driver in 'why' and 'who' we choose. The closer our contact or relationship is with someone, the more important trust becomes, which perhaps accounts for the high trust factor among hairdressers and driving instructors."
Lewis said the survey - carried out by ICM for internet services provider Gradwell - showed three distinct 'bands' of characteristics relating to trust. Of highest importance was 'verification of service' - membership of a professional organisation, for example, or provision of references.
Next was 'reliable contactability' (dedicated landline and premises), followed by 'branding and advertising' (website and business email address).
"Ultimately, feeling good about a tradesperson is key for a customer," said Lewis. "Having all the image gadgetry will not compensate for lack of skill."
'No man's land' warning for repairers
Car repairers have been warned they could find themselves in 'no man's land' because of legal battles between manufacturers and organisations dedicated to improving work standards.
First there is the ongoing dispute between parts supplier SEL and the British Standards Institution. The Doncaster-based company is challenging BSI on a series of issues, including its authority to determine which parts are 'safety critical' in vehicle repair.
Now the insurer-funded Thatcham research centre faces possible litigation from vehicle manufactures over the supply of data and information which, they say, legally belongs to them.
Andrew Moody of RML, the Cambridgeshire-based motor industry legal firm, said: "The manufacturers have invested time, money and resources in creating and collating repair methods and procedures. It does not seem unreasonable of them to be reluctant to allow a third party (Thatcham) to distribute this information for financial gain."
Moody added that if the Thatcham service were withdrawn, independent repairers faced the prospect of paying more expensive fees to manufacturers for access to up-to-date repair methods. "Meanwhile, repairers are most likely to be caught in 'no man's land'."
'Golden' chance for garages
Consumer champion Motor Codes has launched a 'Golden Garage' competition in response to further evidence of public discontent with service and repair standards.
In a survey of just over 1,100 motorists, Motor Codes found familiar grievances about perceived overcharging and failure to fix faults first time. "The service and repair sector historically has a bad reputation when it comes to cost," said Chris Mason, Motor Codes director. "Despite there being many good UK garages, the public's bad experiences with some has brought about a lack of trust."
The Golden Garage scheme, he added, is intended to highlight the best service and repair centres, with a judging panel headed by TV motoring presenter Vicki Butler-Henderson and Daily Telegraph motoring columnist 'Honest John'.
Further details on www.goldengarages.co.uk and http://twitter.com/GoldenGarages.
Chris provides training insight
When training experts wanted some first-hand experience of what's it's like to serve as an apprenticeship, they turned to 20-year-old Chris Hinton to join their advisory panel.
Chris's appointment was announced at the beginning of last month's National Apprenticeship Week by Engineering UK, an independent organisation dedicated to promoting engineering skills.
Chris, who is an electrical and electronic engineering apprentice at BMW's Hams Hall plant, said: "I am delighted to be given the opportunity to share my experiences on the current structure of various apprenticeships."
Paul Jackson, chief executive of Engineering UK, said: "Chris will be an invaluable asset. His experience will provide us with first-hand knowledge on the practicalities of work-based learning."
'Mixed' result on buying trends
Research on car purchasing trends for the rest of this year by Compucars.co.uk has resulted in what its marketing manager Rob Queen describes as "very mixed reading".
While findings indicate that around 60% of prospective buyers intend to limit spending to £10,000 because of factors such as rising fuel costs and insurance, the rest had their sights set on 4x4s, sports cars and compact executives.
Brand image was cited as the most important factor when buying a car (40%), followed by fuel type (36%) and insurance costs (32%). The availability and access to credit still appears to be an issue for motorists, with nearly 70% opting to pay for their next car in cash. Less than 20% were planning to buy a new car before the scrappage scheme ends.
"Our research shows that there is plenty of latent demand," said Queen, "and although there is evidence of a cut in budgets, demand for larger, more expensive vehicles is on the increase."